Pharoah Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog...
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Accounting
Pharoah Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows:
Retail Stores
Internet
Catalog Sales
Sales revenue
$11,303,200
$3,660,000
$5,742,000
Variable expenses
3,980,000
1,362,000
1,910,000
Direct fixed expenses
5,853,784
969,420
3,453,028
Average assets
7,960,000
3,660,000
1,980,000
Required rate of return
12%
12%
12%
(a1) Calculate the margin and asset turnover for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12% or 5.12.)
Retail Stores
Internet
Catalog Sales
Margin
enter percentages %
enter percentages %
enter percentages %
Asset turnover
enter a ratio
enter a ratio
enter a ratio
Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)
Retail Stores
Internet
Catalog Sales
ROI
enter percentages %
enter percentages %
enter percentages %
Answer & Explanation
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